Colu Announces Colored Coins and Lightning Network Integration

Colu, an Israeli provider of blockchain-based technologies, has built a version of Lightning Labs’ code that is compatible with Colored Coins. This would allow for the peer-to-peer (P2P) transfer of digital assets with effectively no verification time, a higher transactions-per-second (TPS) rate and almost no fees.

Colored Coins is an open source Bitcoin 2.0 protocol that enables developers to create digital assets on top of the Bitcoin blockchain. These can be used to issue financial assets and proofs of ownership, to store documents or to create smart contracts. Current projects leveraging the Colored Coins protocol include Mycelium, Swarm and DXMarkets.

The new version uses Lightning technology to transfer digital assets in payment channels and uses the Bitcoin blockchain as a settlement layer and dispute resolution mechanism that secures the assets.

In a new blog post released today, Colu’s Co-Founder and Vice-President, Mark Smargon, wrote:

“The decentralized nature of the Lightning protocol is an excellent choice for scaling Colored Coins because it provides the functionality of a true P2P transaction layer that doesn’t compromise security, and gives users control of their funds. Looking forward, we are excited about the possibility of being interoperable with